financial reform

The Hidden Cost of Big Wall Street Bonuses to Society

Though most Americans wish that Congress would rein in excessive pay on Wall Street, that won't happen while the huge campaign contributions keep flowing. And the financial industry's big money shell game drains away something more precious from our society than money -- it siphons off talent.

Six Reasons Why Goldman Is Wrong on a Banking Recovery

On Thursday night, venture capitalist and DailyFinance columnist Peter Cohan went on CNBC's "The Kudlow Report" to debate whether the banking industry is at the start of a period of recovery, as Goldman Sachs claimed this week. Here's why he argued that Goldman was dead wrong.

Federal Reserve Releases Massive Amount of Bailout Data

The Fed on Wednesday released detailed information about the efforts it took to stabilize financial markets during the recent downturn. The Fed, which is facing increasing criticism from conservatives, defended its actions, and noted that no money was lost on its bailout programs.

M&A Activity Expected to Jump 36% in 2011

Global mergers and acquisitions activity is expected to rocket upward 36% next year, getting its strength from the financial and real estate industries, according to a report released Monday -- a level of increase that hasn't been seen since the credit crisis hit.

Investment Banks Exploit Volcker Rule Loophole

Investment banks are working around new regulations restricting them from putting their own capital into short-term investments: The Wall Street institutions are sidestepping the Volcker Rule by making direct purchases of securities, companies and properties, which are considered longer-term investments.

Morgan Stanley Earnings Preview: Profits Will Fall

Morgan Stanley is expected to report sharp declines in third-quarter earnings and revenue ahead of Wednesday's opening bell, hurt by months of weak trading activity. The financial giant is forecast to post earnings of 15 cents a share, less than half the 38 cents a share booked a year ago.

Flawed Incentives Were the Rot Behind the Mortgage Crisis

The mortgage-backed securities meltdown whose effects still haunt our economy sprang from a simple cause: The rules of the game gave big incentives to every player involved to ignore the problems and keep collecting their fees. And despite financial reform, those rules haven't changed much.

Is the Financial System Safe Now -- or Just Safer?

Since Lehman Brothers went bankrupt in September 2008, regulators around the world have begun erecting a scaffolding of new rules and regulations designed limit excessive risk-taking. The big question is: Are they enough to prevent another financial crisis?

Global Deal Reached on Bank Finance Reforms

The so-called Basel III reforms impose new rules for capital reserves that the world's banks would have to keep on hand as a cushion to avert future financial meltdowns. The G20 nations are expected to ratify the agreement at their meeting in November.

Bank of America CEO Moynihan Buys $391,000 of Stock

Brian Moynihan, CEO of Bank of America Corp. (BAC), bought 30,000 shares in the company on Monday. Moynihan paid $391,000, or $13.03 a share, for the stock, Dow Jones Newswires reported. The purchase could be seen as a sign of confidence in the bank as its shares hover near a 52-week low.

Fixing Fannie and Freddie:
The Debate Begins

The Obama administration acknowledged Tuesday that major changes must be made to mortgage giants Fannie Mae and Freddie Mac, but indicated that it supports continuing government guarantees in the mortgage sector. But is that a good idea?

Don't Blame the Economy on the Uncertainty

The government today is often blamed for causing economic uncertainty, which some point to as the source of all the economy's woes. But there's a deeper issue in play than the fact that we have to guess what's coming next: The problem is the bias in our guesses.

Legal Briefing: Will Banks Have to Refund Overdraft Fees?

A judge ruled that Wells Fargo has to pay its customers restitution for processing checking-account transactions in a way that makes the most charges bounce and maximizes overdraft fees. Other banks have also been sued over this issue.

Financial Reform Law Lets SEC Keep More Secrets

The new financial reform law may have made it easier for the SEC to keep secrets. Under the regulations, the SEC is exempt from having to disclose records or information derived from "surveillance, risk assessments, or other regulatory and oversight activities," FoxBusiness.com reports.

A Key Bond Market Thaws, but It May Be Only Temporary

The market for asset-backed securities has reopened after being essentially frozen for a week, in the first example of how unintended consequences from the Dodd-Frank overhaul can create mischief in the financial markets.

Do Fannie and Freddie Have a Future?

The future of the government-backed mortgage finance giants Fannie Mae and Freddie Mac, which critics have accused of exacerbating the meltdown in the U.S. housing market, will be discussed next month at a conference sponsored by the U.S. Department of Treasury.

A Grab Bag of Consumer Protections

Banks aren't too big to fail, taxpayers shouldn't have to shoulder bad decisions by corporate America, and consumers need protections from investment houses looking to boost their bottom lines, according to a U.S. Treasury official.

Gold Coins vs. Gold Cons: Investors Beware

With fear about the future and mistrust of government on the rise, more investors are considering putting their savings into gold. But they should tread with caution: Gold bugs pitch the precious metal as a safe economic hedge, but the sellers' shenanigans could cost you a bundle.

The Biggest Winners in Financial Reform

The Dodd-Frank financial regulation reform bill tries to resolve some of the most pressing problems left over from the financial crisis. The effects will clearly be sweeping, even if not all quite predictable. At this early point, here's a rundown of some of the biggest likely winners.

Democrats Push Financial Reform With Slim Margin for Error

Senate Democrats will make the final push to pass a financial reform bill this week, knowing they have slim margin for error in their hunt for votes. The House of Representatives has already passed a version of the bill. To send the bill to President Obama to sign into law, Senate Majority Leader Harry Reid will likely need 60 votes to overcome a procedural hurdle in the 100-seat chamber.

Greenspan Says U.S. Economy Is Likely in a 'Pause'

Former Federal Reserve Chairman Alan Greenspan said that the recent slowdown in economic indicators is most likely temporary. "It%u2019s more than likely a pause in the usual cyclical pattern," Greenspan said in an interview with CNBC.